Cosatu's opposition to inflation target leaves the poor cold

While inflation targeting generates sound and fury among trade union officials and some politicians, the general public find the topic a bore. This emerges from interviews by TNS Research surveys with 2 000 adults from seven major metropolitan areas.

The survey in September last year showed only 20 percent of people disagree with inflation targeting as a policy while 42 percent "don't know" their views. "While knowledge of the policy improves with wealth and education there is still widespread confusion. It is clear the policy is a mystery for many," said TNS director of innovation and development Neil Higgs.

Among the poorest sections of the population, 59 percent had no view, while 42 percent of the middle section and only 23 percent of the wealthy said the same.


There is also a disparity among people with different levels of education: 54 percent of those with only a primary school education had no view, 44 percent of those with matric and only 20 percent of those with university education.

Resistance to inflation targeting shows some demographic differences, with white, coloured and oriental people being more resistant than black people, according to Higgs.

"Further, there is more resistance among the most affluent than among poorer people."

This raises an interesting issue. Trade union federation Cosatu claims it is waging its battle against inflation targeting on behalf of the poor. But the reality is that it is representing the views of the wealthier members of society.

Source: Business Report